David Jones chief Paul Zahra in the money as he walks away from top job

PAUL Zahra was not pushed from his job as boss of David Jones, insists the new owner of the iconic department store. And why would he, when he can walk away with close to $8 million?

Mr Zahra on Tuesday called time on a roller-coaster ride as CEO of David Jones. He was promoted into the role when Mark McInnes was forced to resign as boss in 2010 after admitting inappropriate behaviour with a young female staff member.

His reign has coincided with a super-tough retail environment, with a flood of fast fashion retailers to Australia and online shopping opening up unprecedented competition for the 176-year-old department store chain.

In the past year he survived a partly-hostile board and a near takeover from rival department store Myer. In October he declared he was tired and would leave when a replacement was found.

He had a change of heart after boardroom coup and struck gold when Woolworths Holdings Ltd two weeks ago executed its $2.3 billion buyout.

Mr Zahra is expected to walk away with at least an additional $1.5 million in termination payments on top of the $6.3 million in shares and options he cashed in when Woolworths bought David Jones.

His replacement Iain Nairn, who was boss of Woolworths-owned Country Road, might lack Mr Zahra’s dapper style, but the pair know each other well through their respective roles.

Mr Nairn on Tuesday said he was “delighted” that Mr Zahra would stay for a three-month handover and would build on and accelerate the strategy already in place.

“The past four years have been a time of great challenge and reward,’’ Mr Zahra said in a statement.

New owner Ian Moir, CEO of Woolworths Holdings, deflected suggestions Mr Zahra left because he wasn’t the right fit for the future business.

“It was his decision and his call. It came at the right time in his life,” Mr Moir said.

Woolworths has not disclosed how much Mr Zahra will be paid out. But according to his contract terms detailed in the 2013 annual report, he is entitled to 12 months fixed pay of around $1.5 million and any long-term and short-term incentives that have accrued. Mr Zahra was paid $2.63 million in total remuneration in the year to July 27 2013.

Mr Moir said Mr Zahra would be successful in whatever new career he decided on. “I think he’s going to take a fair break and look at what his options are. He’s in no rush,” Mr Moir said.

“I think financially he’s as comfortable as one can be — not that I know his financial situation. Clearly as a CEO of a successful business that’s just been bought out, he should be in that position, shouldn’t he?”